Zilliqa Price Prediction: ZIL forms a double bottom, marking the end of the downtrend
- Zilliqa price traded quite heavily after a 32% correction in the past few days.
- The sharding blockchain got caught in the risk-off sentiment that has soured the markets after the Fed revised rate hikes for 2023.
- ZIL 12-hour chart displays the RSI entering oversold territory.
Zilliqa price has had a rough few days after the surprise announcement of the Fed. ZIL is looking for some support and that might come in sight.
Zilliqa price trends lower along with the crypto market
Not just ZIL is in a very sharp downward trend. Overall momentum is shaking up the cryptocurrency market with the Chinese government issuing further details on their plan to block cryptocurrencies from entering China. Bitcoin as well has had its fair share of losses these past few days.
Next to that, we have had the US Federal Reserve shooking overall market sentiment by penciling in 2 rate hikes for 2023. Earlier in the year, the Fed calmed the markets were no issues with rising inflation and the FOMC was more than happy to let inflation overshoot. However, the recent dot-plot-projections show that the Fed is backtracking now and does look worried over inflation.
All risk-on assets have had a turbulent past few days, yet general sentiment looks to be stabilizing. So, time to pick up some Zilliqa?
ZIL/USDt 12-hour chart
Zilliqa price has been on a downward trend recently, but we appear to be coming near a double bottom around $0.06.
Back in February, this area held nicely, and it should maintain for now. Additionally, ZIL's RSI is in oversold mode on the 12-hour chart, which could point to an end of this correction.
Keep in mind though that the death cross formed with the 55 and the 200 DMA is still something to watch for and further downside potential is still there.
Author
FXStreet Team
FXStreet
